NAM Coalition Asks for One Year Stay of Enforcement for CPSIA "Tracking Label" Requirement, Etc.
The National Association of Manufacturers' CPSC Coalition has requested that the Consumer Product Safety Commission grant a one year stay of enforcement for the Consumer Product Safety Improvement Act of 2008 (CPSIA1) "tracking label" requirement which takes effect for children's products manufactured after August 14, 2009.
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Alternatively, the coalition has asked CPSC for immediate guidance on children's products for which tracking labels are not practicable.
(The NAM CPSC coalition includes 31 associations and industry groups representing various products (textiles and apparel, toys, jewelry, arts and crafts, etc.) and various sectors (manufacturers, retail, importers/exporters, etc.).)
CPSIA Requires Tracking Labels on Children's Products Effective August 14th
Effective August 14, 2009, manufacturers of children's products must place permanent distinguishing marks on such products and their packaging, to the extent practicable, that would enable the manufacturer and ultimate purchaser to ascertain the (i) manufacturer or private labeler; (ii) location and date of production; (iii) cohort information (including batch, run number, or other identifying characteristic); (iv) etc. (the "tracking label" requirement).
CPSC has previously stated that the scope of the tracking label requirement is quite broad in that it applies to all children's products2, including, but not limited to, items such as clothing or shoes, not just toys and other regulated products.
One Year Stay Would Give Time to Develop Clear, Understandable Rules, Etc.
The coalition has asked the CPSC to immediately vote to stay enforcement of the CPSIA children's product tracking label provision for a full year, until August 14, 2010, in order to allow sufficient time to develop "clear and understandable" rules and provide CPSC, industry, and other stakeholders time to work together to develop an orderly approach to this new requirement.
Not Enough Time for Proper Implementation, Extreme Costs to Industry Likely
The coalition notes that CPSC's comment period on the CPSIA tracking label requirement for children's products ends April 27, 2009; that CPSC will need several months to review the comments and develop comprehensive guidelines and regulations; and that these regulations are likely to only be published shortly before August 14, 2009. According to the coalition, such an outcome would prove extremely disruptive and costly to the business community.
Even if the CPSC were to publish guidance on this new provision immediately, the coalition states that there would be insufficient time for companies to implement this provision properly as changes in product processes, including changes in labeling requirements for packaging and products, usually take at least a year in many sectors in order to ensure smooth execution.
Furthermore, many companies are already now ordering, planning, and costing production of goods that will be made in fall 2009 or later, which means they are already making guesses about how the new labeling provision will be implemented. Should those guesses prove to be wrong when the CPSC publishes its guidance, companies will have to scramble to rework labeling and packaging at significant cost.
CPSC Should at Least Make Clear Circumstances Where Compliance is Not Practicable
If CPSC does not grant this stay request, the coalition states it is vital CPSC quickly make clear circumstances where it is not "practicable" to apply tracking labels. This would include, for example, situations where the children's product is very small, such as many small toys, art materials like paint brushes or children's jewelry, etc.
1Enacted on August 14, 2008 as Public Law 110-314.
2"Children's products" under the CPSIA are consumer products designed or intended primarily for children 12 years old or younger. In determining whether a consumer product is primarily designed or intended for such children, the CPSIA outlines certain factors to be considered, including a statement by the manufacturer about the intended use of the product, etc.
(See ITT's Online Archives or 02/25/09 and 09/15/08 news, 09022505 and 08091515, for BP summary of CPSC's request for comments on the CPSIA tracking label requirements, and the CPSIA tracking label requirements, respectively.)
CPSC coalition letter (dated 03/24/09) available at http://www.shopfloor.org/wp-content/uploads/nam-cpsc-tracking-label-stay-3-24-09.pdf
BP Notes
(1) In January 2009, NAM's CPSC Coalition, and other parties, requested that the CPSC issue an immediately effective emergency rule staying the effective date of CPSIA lead content limits in accessible parts of children's products. While CPSC did not stay the lead content limits themselves, in February 2009 it did stay certain CPSIA testing and certification for one year (until February 10, 2010), including for lead content. (See ITT's Online Archives or 02/06/09 news, 09020610, for BP summary.)
(2) In a separate letter sent March 24, 2009, NAM has asked Congress to "fix the flaws in the CPSIA." Among other things, NAM states that the law's unrealistic compliance deadlines made it impossible for industry or the CPSC to adequately prepare before the law went into effect; that its unprecedented decision to retroactively apply the new lead content limits and phthalates ban to inventory already sitting in stores and warehouses is causing large disruptions to industries across the board; etc. NAM press release (dated 03/24/09) available at http://www.nam.org/NewsFromtheNAM/Press%20Releases/ILRP/NAMCallsforCongressionalActionFixCPSC.aspx